What happens if I dont pay credit debts

swagato1978

What happens? I am a student... and have $15000 debt... I am sorry.... But I cant pay right now because of my studies and what not. However I have like $4000 I can pay. WHat happens if I dont pay. The debt is in one card. WHat are the things the credit card companies can do? I dont have a car or a house. I have practically no savings. And I study at UK now... the credit debt is from US.. I was paying it so far as much as I can without getting late.. But now I am just tired. I need to know what are all the options they have against me when I stop paying? After graduation when I get any job, I will start paying back.. But now for the next 2 years I cant.

Moonbeam

I would speak to them and explain situation - see what they suggest.

glasgowc

convert it to a loan over longest term you can,

Reaper

Simply refusing to pay is the very worst thing you can do. You will be constantly pestered (particularly when they sell your debt to a debt collection agency), they will get a CCJ against you, and your credit history will be shot to pieces.

One option used to be declaring yourself bankrupt but I think the law has been changed so that students can not do that any more (too many were doing it).

That's the negative. The positive is there are lots of things you can do instead. Start by reading Martin's article Where to start with problem debts and in particular make a note of the agencies which will help you for free. They will even negotiate on your behalf.

Contacting the company you owe money to and explaining that you have no income with which to pay them is a good idea. Best to have some suggestions of your own ready so you come accross as somebody keen to repay, just temporarily unable to. That way they may be more receptive to a freeze until you finish your studies.

It is complicated by the fact it is a foreign debt, so I urge you to start by contacting one of the agencies mentioned to get a list of your options.

If you have more questions I suggest asking on the "Wannabe Debt Free" forum as there are lots of experienced people there who can point you in the right direction.

Good luck.